Greek parliament agrees to Eurozone austerity demands
Greek MPs (Ministers of Parliament) have finally approved tough economic measures required by the Eurozone in return for a bailout of €86 billion (about 128.5 billion in Singapore currency).
Amongst the reforms that have now been agreed to are a privatization of Greece’s national electricity network, cuts to the generous pension system, and a major overhaul of the tax system, which is aimed at collecting more money from citizens.
Saying “Yes” to the deal was essential for Greece, as they are the conditions of their new bailout – the third so far - which will keep Greece functioning economically after the crisis of the last few months. Declining this offer would almost certainly lead to economic collapse and Greece being forced out of the euro.
Although the vote was passed, 64 MPs had voted “No”, many from the Greek Prime Minister, Alexis Tsipras’ own Syriza political party. Since the Eurozone deal conditions were offered, Greece has also seen the resignation of a number of senior government figures, including the deputy prime minister and the finance minister.
All this is mainly because the conditions of the current bailout are similar to the kind of austerity measures that Greeks rejected in the first place in a referendum on 5 July. Click here and here to read more.
In fact, Prime Minister Tsipras had said that he did not believe in the deal, calling the proposal “irrational”, but nonetheless urged MPs to approve the measures to avoid the collapse of the banks and disaster for Greece.
Meanwhile the Eurozone finance ministers will hold a conference call to discuss the next steps in the bailout. Of immediate concern is how to fill Greece’s short-term cash needs, with the country facing a big payment to IMF (International Monetary Fund) next week and Greek banks still shut since 29 June.
(All images - credit: Wikimedia Commons under Creative Commons licence)
